The Federal Reserve Board has proposed changes to how financial firms get access to the US Central Bank’s payment system, a report by PYMTS has revealed.
Earlier this week, the Federal Reserve Board unveiled its proposed plan, adding that it wants to make sure the process that evaluates new requests is fair.
The plan is built off framework from May 2021, which would create a tiered system and make the process easier for federally-insured lenders. However, entities not supervised by Washington regulators would have to face more questions.
Fed Governor Lael Brainard said in the announcement, “With technology driving rapid change in the payments landscape, the proposed guidelines would ensure novel requests for access to Federal Reserve accounts and payment services are evaluated consistently and transparently to ensure a safe and innovative payment system.”
However, there has been controversy over President Biden’s bank regulator pick, Sarah Bloom Raskin, which has delayed the proposition. Raskin has faced backlash over her previous job at Reserve Trust, which is a FinTech that was granted access to the payment system. Republicans blocked a vote on whether to appoint her by refusing to attend the vote.
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